Corporate Social Responsibility

4.6 Corporate Social Responsibility

Unit aims To develop an understanding of Corporate Social Responsibility (CSR) issues and impacts of CSR policy.

Unit level

4

Unit code Credit value

A/503/7082 15 Unit grading structure Pass

Assessment guidance Learners will be required to demonstrate evidence of understanding corporate social responsibility (CSR) issues and the impact of CSR policies on stakeholders of organisations. They will make recommendations for responsible business practice.

Learning outcomes The learner will:

1 Understand current corporate social responsibility issues facing

Business

2 Understand the impact of corporate social responsibility policy on different stakeholders

3 Be able to make recommendations for responsible business practice

Indicative Content

Assessment criteria The learner can:

1.1 Define corporate social responsibility (CSR) 1.2 Describe background and changing attitudes to CSR 1.3 Describe the regulatory framework for CSR 1.4 Explain environmental issues in CSR 1.5 Explain economic and political issues in CSR 1.6 Explain social and community issues in CSR 2.1 Assess the benefits of CSR to employees 2.2 Analyse the impact of CSR on the supply

Chain 2.4 Explain how a CSR policy impacts on business performance 2.5 Explain how CSR impacts on marketing

Strategy 2.6 Assess the potential conflicts which may arise between the needs and expectations of different stakeholders 3.1 Review the CSR policy of a specific business 3.2 Assess the extent of voluntarism in CSR

Policy 3.3 Recommend changes to CSR policy to benefit different stakeholders 3.4 Assess the potential impact of changes in

CSR on business performance

1. Understand current corporate social responsibility issues facing business

Definitions  Behaving responsibly  Contributing to a better society  Integrating social and environmental concerns in business  The Triple Bottom Line – people, planet and profit

Regulatory frameworks  ISO 26000 Social responsibility – voluntary guidance  Environmental protection  Health and safety legislation  Human rights legislation  Compliance with employment legislation

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Environmental issues  Recycling policies  Sustainability  Use of packaging  Logistics of delivery, congestion  Use of scarce resources  Pollution  Carbon footprint

Economic and political issues  Location of suppliers  Supporting local business  Supporting developing countries  Fair trade  Non acceptance of global agreements e.g. Kyoto

Social and community issues  Employing socially disadvantaged and disabled people  Sponsorship  Encouraging education and training  Volunteering

2. Understand the impact of corporate social responsibility policy on different stakeholders

Benefits to employees  Improved working conditions  Lack of discrimination  Compliance with legislation  Whistle blowing policy

Impacts on supply chain

 Ethics in production  Responsible sourcing  Reduced transport costs  Reduced carbon footprint  Use of technology in supply chain management

Impacts on business performance  Improved

Benefits to employees  Improved working conditions  Lack of discrimination  Compliance with legislation  Whistle blowing policy

Impacts on supply chain  Ethics in production  Responsible sourcing  Reduced transport costs  Reduced carbon footprint  Use of technology in supply chain management

Impacts on business performance  Improved sales  Improved profits  Conflicts of interest between stakeholders  Competitive edge

Impacts on marketing strategy  Ethical policies  Brand differentiation  Recognition of different cultures  Cause related marketing campaigns  Conflicts  Customers willingness to pay more for ethical products  Shareholders return on investment  Increased costs

3. Be able to make recommendations for responsible business practice

Examples of businesses  Manufacturing  Financial services  Hospitality  Retail  Not for profit

Voluntarism  Response to pressure groups  Effectiveness of voluntary practice

Changes to CSR policy  Adapting business practice  Ethical leadership  Ethics in production and sales  Engaging in corporate philanthropy  Codes of conduct  Environmental reporting

Different stakeholders  Customers  Shareholders  Owners  Suppliers  Local communities

Impact of changes  Enhanced public image  Increased sales/profits  Risk management  Competitive edge  Improved recruitment and retention of staff